When looking at outbound sales prospecting metrics, most companies track email response rate. What’s a good response rate for a startup?
More than 80% of small businesses, including startups, rely on email as their primary marketing channel. Tracking your email response rate reveals how effectively your emails engage your audience. A good rate can lead to more sales, while a not-so-good rate can mean falling behind on sales goals.
“Email has an ability many channels don’t: creating valuable, personal touches — at scale,” marketing expert David Newman says.
Let’s look at some B2B marketing benchmarks for email and how to optimize response rates for email marketing.
Email response rate refers to responses that recipients give to emails that they receive. For example, responses could come in the form of product reviews or ratings, feedback on services, or even answers to surveys or questionnaires, according to email service provider Emma.
“Email response means direct replies — for the most part. This is a very specific type of engagement that requires a lot more from subscribers than a simple click,” says Emma.
It’s worth noting that email response rates and email open rates aren’t the same. As pointed out by Semrush, a provider of digital marketing software, the open rate calculates the percentage of recipients who opened an email. For example, if you send an email to 500 people and 75 of them open it, your email open rate is 15%.
Email response rates vary by industry, email type, time of day, and quality of subject line. A 10 percent response rate is a good rate for startups, with a goal of increasing the rate to at least 15% to 20% over time.
As you analyze email metrics to learn more about your prospects and what they want and need, you can adjust your email strategies to drive more engagement.
Wait until you’ve gathered and analyzed a hefty amount of performance data before making big adjustments to your email marketing strategy. Then, test one A/B version at a time. This approach enables you to shift your email strategy without mistaking marketing noise for actual signals.
While response rates can measure the performance of email prospecting, this metric will always take a backseat to engagements and conversions. A solid outreach campaign should start conversations with prospects:
Use this long-term view as a basis for reviewing email response rates. Prospects will engage with your emails and participate in a conversation when you understand their goals and challenges.
Keep in mind that effective email outreach doesn't stop with response rates for emails. Rather, it primes a prospect to engage at a deeper level and move further along the buyer journey.